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Innovation as a driver of eco-innovation in the firm: an approach from the dynamic capabilities theory

Fernandez De Arroyabe Fernandez, Juan Carlos and Arranz, Nieves and Li, Jun and Fernandez De Arroyabe Arranz, Marta (2020) 'Innovation as a driver of eco-innovation in the firm: an approach from the dynamic capabilities theory.' Business Strategy and the Environment, 29 (3). 1494 - 1503. ISSN 0964-4733

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The aim of this study is to investigate how innovative capabilities of the firm affect eco-innovation from a dynamic capability lens. We build on OECD’s (2005) research to conceptualise eco-innovation as the capacity with which firms modify, re-design, and create products, processes, procedures and organisations in order to reduce environmental impact. We propose and test the temporal and relational properties of eco-innovation as a capability. We demonstrate that eco-innovation possesses two properties of innovative capabilities, namely, persistence over time and interrelation with other innovations. We thus shed new light on the mechanism through which firms engage in eco-innovation. We also provide empirical evidence to the debate on the relationship between the ‘normal’ innovation (technological or non-technological) and eco-innovation. We show that eco-innovation and innovation are interrelated both simultaneously and sequentially. Moreover, we show that innovation capabilities and eco-innovation are not only related, but they also have a complementary nature, which facilitates the development of future eco-innovation.

Item Type: Article
Uncontrolled Keywords: Eco-innovation, dynamic capabilities, persistence over time, interrelation.
Divisions: Faculty of Social Sciences > Essex Business School
Depositing User: Elements
Date Deposited: 09 Dec 2019 10:01
Last Modified: 08 Mar 2021 13:20

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